E-Financial
How to Deepen Financial Inclusion in Nigeria, by ALMPO Mobile Money Confab 2019
The burden of delivering financial inclusion to the last mile has become one that needs the strategic participation of all industry stakeholders in the ecosystem, so as to deliver value propositions that will deepen financial services culture for the benefit of the citizenry.
These were the views of participants at the 2019 Mobile Money Conference, organized by Association of Licensed Mobile Payment Operators (ALMPO).
The event themed: ‘Beyond Payments’ was held on Wednesday, 27th November, 2019 at Four Points by Sheraton, Victoria Island, Lagos.
Chinedu Onuoha, chairman, Association of Licensed Mobile Payment Operators (ALMPO), noted that the aims of financial inclusion should not be limited to payments alone, that is, paying and receiving of money.
He stated that financial services should be made to cover areas that are germane for the average citizen if we are to achieve the objectives of financial inclusion.
He explained that financial services should be all encompassing and focused on rendering everyday services that go beyond payments services.
According to him, “The theme of this year’s conference aptly captures the general direction of the industry. We are of the opinion, and rightfully so, that for the objectives of financial inclusion to be realized, we must go beyond payments, as we try to attract more people into formal financial services.
“We are aware that the financial needs of the average citizen are much more than pay and receive. People want to save and earn interest.
“They want to participate in pensions, they need some form of insurance, and many more. We also know that for all of this to realized, there must be adequate security and trust in the system.”
Onuoha called for collaboration of security agencies and other government agencies, which according to him, would create the right synergy that will secure the payment system and provide adequate protection to operators as they go about their business.
Aishah Ahmad, deputy governor, Financial Systems Stability, Central Bank of Nigeria (CBN), stated that Mobile Money (MM) is vital to CBN as a regulator and as such, they are open to suggestions on the way forward, without holding on to rigid regulations.
Ahmad who was represented by Aisha Isa-Olatinwo, assistant director, Payments System Management Department, CBN, noted that since estimated reports show that Nigeria has over 100 million unique mobile numbers, if mobile money operations work, there will be over 100 million subscribers.
She enjoined everybody present at the conference to work together to create a success story that will be beneficial to the ecosystem and the entire citizenry.
Uzo Eziukwu, group CEO, BlueTag Group, in a keynote address said that Mobile Money is fast becoming Africa’s legacy to the world, using Kenya’s MPESA as a typical example, doing about 1.7 billion transactions per year and making up to 50% of Kenya’s GDP.
He revealed that there are over 120 Mobile Money Operators (MMOs) in Sub-Saharan Africa (SSA), and they came into Nigeria in 2010 with a focus to drive financial inclusion and as an adjunct to mainstream banking.
He dissected the journey of MM in Nigeria into four stages, according to him, the first stage was the pilot stage between the years 2010 and 2012, which served as linkage of MM into mainstream banking.
According to the Eziukwu, “this was a time to understand the regulatory environment and regulators. This period saw confusion between collaboration and competition.
“This stage saw operators understanding the peculiarities and challenges of the Nigerian landscape. The need to collaborate and align effectively with telcos was also noticed.This stage had the challenges of integration and knowledge sharing”.
The second stage, according to him began from 2013 to 2015, which saw constructive engagement and alliance, as bank and non-bank MMOs engaged with one another and CBN. Also, partnerships arose between MMOs and banks, as CBN further streamlined MM policies.
“These moves saw growth in MM adoptions and in the number of bank accounts, noting also that this stage saw significant growth in MM acceptance driven majorly by the already banked.
He further revealed that innovation in mobile money operation has to be wrapped around consumer needs and not just payments, needs like micro-credits and service-based lending.
He also suggested products to be created for those at the bottom of the pyramid, products like health insurance, micro-pension, interest-based micro-savings, and rotational savings.
Acknowledging that the theme of the conference was apt, he concluded by sharing that as MM is moved forward, the sound benefits of financial inclusion will be unraveled.
Professor Olayinka David-West, academic director, Lagos Business School, delivering a paper Titled ‘Harnessing New Opportunity Areas for Mobile Money Adoption in Nigeria’, decried that only 4% increase in digital payments was recorded since 2016.
She further revealed that out of the estimated 99.8 million adults in Nigeria, only 3.3 million are MM users, and of the 36.8% excluded, most are women.
She reminded that engaging the bottom of the pyramid does more than gaining financial inclusion, but it also enhances the social and economic development of the society.
She also shared that a compelling value proposition is needed to get the attention of the customers. She argued that if the products and services don’t fill the proposition, MM won’t get to the Promised Land.
She also talked about taxes and levies, cybersecurity and fraud, connectivity and power, sharing how the setbacks and challenges in the sectors affect the adoption of MM by the masses.
Mrs Bunmi Ogunlewe, head of Product, e-tranzact, who spoke about shared services platforms as enablers for Mobile Money Growth, said that with the various needs faced by people at the bottom of the pyramid, collaboration is needed to address them.
She advised that the MMOs should come together and build an informed credit system which will help in the journey of MM through the last mile.
She shared that while each MMO collates data, until collaboration is done the data will be useless whereas with collaboration, fresh, enormous, insight will be gotten.
She opined that shared services and shared infrastructure will help get an additional 50 million customers and without shared platform services, the adoption and growth hoped for by MMOs won’t be attained.
The conference had different panel sessions that proffered solutions on how we can reach the last mile and as well set a new agenda for the next decade which will see the implementation of the solutions achieved in driving financial inclusion in Nigeria and indeed Africa.
Nigeria’s banking sector is losing an estimated N2.5 trillion in annual earnings due to the Central Bank of Nigeria’s high Cash Reserve Ratio (CRR) policy, according to a new report by Chapel Hill Denham.
The investment banking and research firm said the policy continues to impose significant constraints on bank profitability by requiring lenders to keep a large portion of customer deposits with the Central Bank without earning returns on them, effectively locking away funds that could otherwise support lending and income generation.
In its report titled “The Nigerian Banking Paradox: High Returns, Deep Discounts,” Chapel Hill Denham noted that although Nigerian banks rank among the highest return-on-equity performers in Africa, they remain undervalued compared to peers, largely due to regulatory constraints and macroeconomic uncertainty.
The firm identified the CRR regime as a key structural factor limiting the sector’s earnings potential, arguing that it reduces balance sheet efficiency and restricts credit creation to the real economy.
According to the report, banks are still required to pay interest on deposits while a significant portion of those funds remains sterilised at the apex bank.
Chapel Hill Denham stated that the current policy framework, which evolved in response to past financial sector instability and exchange rate pressures, may now be exerting a heavier drag on growth and profitability than originally intended.
“Our analysis reveals that Nigerian banks operate under a uniquely restrictive regulatory perimeter,” the report said, adding that the structure suppresses reported returns despite underlying profitability strength.
The report also compared Nigeria’s reserve requirements with other jurisdictions, noting that the country’s CRR remains significantly higher than several African and emerging markets.
While South Africa operates a 2.5 per cent CRR, Kenya maintains 4.25 per cent, Ghana 15 per cent, and Egypt 16 per cent, with Morocco reported to have reduced its reserve ratio to zero.
Analysts at the firm said a moderation of Nigeria’s CRR from 50 per cent to 30 per cent could release up to N8 trillion into the banking system and potentially boost annual pre-tax profits by about N800 billion.
They added that investors currently price Nigerian banks on the assumption that the tight monetary stance will persist, limiting valuation upside despite strong earnings performance.
At its February 2026 meeting, the Monetary Policy Committee of the Central Bank of Nigeria retained the CRR for Deposit Money Banks at 45 per cent, while Merchant Banks remained at 16 per cent, and public sector deposits outside the Treasury Single Account framework at 75 per cent, as part of efforts to sustain tight monetary conditions and manage liquidity pressures.
Lagos State Government has sanctioned 15 money lending firms over violations of operational guidelines and practices considered harmful to residents.
Ibrahim Layode, commissioner for Home Affairs, disclosed this during the 2026 Ministerial Press Briefing held in Ikeja.
Layode said the affected firms were penalised for engaging in sharp practices contrary to regulations guiding money lending operations in the state.
According to him, the government remains committed to enforcing strict compliance within the sector to curb fraudulent financial activities and protect Lagos residents from exploitation.
“The firms were sanctioned to ensure strict adherence to guidelines and to protect Lagosians from sharp practices by financial firms,” he said.
The commissioner described money lending as an important part of the economy, noting that it provides quick and accessible credit facilities to petty traders and small-scale business owners who often face difficulties obtaining loans from commercial banks due to stringent requirements.
“Moneylending business is one of the vital parts of the economy which allows people in the small-scale industry and petty traders to have stress-free access to quick loans to finance their businesses,” Layode said.
He explained that the Ministry of Home Affairs is responsible for processing applications, issuing and renewing licences for money lenders, as well as monitoring and supervising their operations across the state.
Layode added that the ministry regularly organises stakeholders’ forums to expose operators to global best practices and improve professionalism within the industry.
“We also conduct stakeholders’ forums for moneylender operators in order to bring them up to speed on the latest world best practices,” he said.
The commissioner further disclosed that the ministry collaborates with federal regulatory agencies, including the Federal Competition and Consumer Protection Commission (FCCPC) and the Special Control Unit Against Money Laundering (SCUML), to ensure compliance with financial and consumer protection regulations.
According to him, the ministry also profiles and monitors money lending firms to protect residents from fraudulent operators and dubious schemes.
“In addition, the Ministry registers, profiles and monitors the viability of such companies with a view to ensuring that while the money lenders are in business, the general public is also protected from being scammed by fraudulent people of questionable characters,” Layode said.
He noted that licensed money lenders have contributed significantly to the growth of micro and small businesses in Lagos by providing alternative sources of financing outside the conventional banking system.
“This partnership has greatly assisted small-scale business owners in Lagos to keep their petty businesses afloat without having to contend with high interest rates and clauses of the big commercial banks,” he added.
Layode revealed that between 2025 and 2026, the ministry received 112 new applications from money lending operators, while 214 existing licences were renewed.
On naturalisation and special immigrant status applications, the commissioner said the ministry, in collaboration with the Federal Ministry of Interior, continued to process applications from foreign nationals seeking Nigerian citizenship or permanent residency.
He explained that naturalisation is granted to foreigners who have resided continuously in Nigeria for at least 15 years and have established investment interests in their states of residence.
“The objective of the exercise is to grant citizenship rights to foreigners who have lived in the country continuously for fifteen years and above with investment interests in their states of residence,” he said.
Layode added that special immigrant status is granted to foreign nationals married to Nigerian citizens to promote integration and economic development.
According to him, applicants undergo screening and verification processes involving the Nigerian Immigration Service, Department of State Services, Nigeria Police, Lagos State Ministry of Justice and the Lagos State Internal Revenue Service.
He disclosed that 68 applications for naturalisation and special immigrant status were received during the period under review, while 20 applicants were screened and cross-examined for onward transmission to the Federal Ministry of Interior for final approval.
First Bank of Nigeria Limited, in partnership with Visa, has launched its multicurrency Visa Signature card, a premium offering designed for Nigeria’s affluent segment, as well as the Naira Visa Debit Card aimed at extending accessible, reliable electronic payment capabilities to a broader segment of the Nigerian population.
According to First Bank, the Signature card offers an exclusive portfolio of lifestyle benefits, global travel privileges, and curated merchant offers through Visa’s worldwide acceptance network, giving high-spending Nigerians a product built around how they live.
Commenting on FirstBank’s ambition for its premium cardholders, Chuma Ezirim, group executive, eBusiness & Retail Products, FirstBank, said Visa Signature is crafted to meet those expectations and lifestyle privileges that empower customers to live without boundaries.
“At FirstBank, we are dedicated to creating financial solutions that reflect the evolving lifestyles of our customers. We understand that our premium customers aspire to experiences that reflect their global outlook.
“Visa Signature is crafted to meet those expectations, offering access to exclusive experiences, global connectivity, and lifestyle privileges that empower our customers to live without boundaries. We remain focused on creating value and reinforcing our position as the partner of first choice for Nigerians at home and abroad.”
Highlighting the strategic importance of the FirstBank partnership, Andrew Uaboi, vice president and Cluster head, West Africa, Visa, noted “Nigeria’s affluent consumers are among the most active and globally connected spenders on the continent. Visa Signature is designed to serve that profile with the depth of benefits and the breadth of acceptance they deserve. We are delighted to work with FirstBank in making this available to the Nigerian market.”
Ezirim explained that through Visa Global benefits and Visa Destination offers, the Signature cardholders gain access to preferential rates, premium experiences, and priority services across hundreds of partner merchants, hotels, airlines, and destinations around the world. The card which is multicurrency in nature supports both domestic and cross-border transactions, ensuring seamless payment experiences.
Also speaking on the launch of the Naira Visa Debit Card, Ezirim said the card is “designed to make life easier for our customers, whether they are paying for groceries, settling utility bills, or shopping online. By extending reliable electronic payment access across Nigeria, we are helping more people transition confidently from cash to digital payments, supporting the nation’s cashless policy and empowering communities with greater financial inclusion.”
On his part, Uaboi, noted that “a strong payments ecosystem works for everyone. The Naira Visa Debit Card extends reliable electronic payment access to everyday Nigerian consumers, and this in addition to the cards in our portfolio continues to demonstrate what a truly comprehensive card portfolio looks like for the Nigerian market. Visa is proud to power this offering with FirstBank.”
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